The differences of Conventional and FHA type loans for Short Sales

Real Estate Broker/Owner with Maxus Realty Group - Broker 301-246-0001 Broker - Realtor - CEO

The differences of Conventional and FHA type loans for Short Sales

Maryland Real Estate

"FHA: If the homeowner does not occupy the property, no short sale will be approved.!”


What are the differences between a Conventional and an FHA loan short sale process?


FHA is definitely the best one of both. .. why? because you know the rules before hand. 

A conventional loan short sale may have the most flexibility, even if you are an investor your bank may approve a short sale but, an FHA has guidelines that are easy to follow assuring the short sale to be approved if you are within those guidelines.

Another big difference between these two types of loans is that FHA  will not use a BPO. Instead they will require an FHA Certified Appraisal.
In a conventional loan, the lender only requires a BPO that maybe completed by a Realtor that is hoping the short sale does not go trough so it becomes a future REO listing for them.
As a Realtor doing nothing but short sales, my job is to control shoddy BPO's so I can protect my clients.

Another major difference between an FHA and a Conventional Loan Short Sales is that the lender is required to give a copy of the appraisal to the homeowner.

In case you are wondering. . 

How Much A Short Sale Cost Me After All?

foreclosures"A short sale could be the option you are looking for"

In a short sale you SELL YOUR HOUSE

In a Foreclosure. . . YOU LOSE IT!

short sales maryland

Click on my eBook about Short Sales.. .to have a clearer vision if you could use a SHORT SALE in order to find a new fresh start.. 

Fernando Herboso is a Certified Distressed Property Expert 
Short Sales Maryland

and a Gold Member 
Certified Default Resolution SpecialistTM with (CDRS)

short sales specialist
You can call  (Fernando Herboso) directly  @  240-898-1848 ext #1 
or email :

We can help you directly in Maryland, DC or Virginia

outside our area. ..we can guide you to a local true professional that cares and  loves helping people avoid a foreclosure as much as we do!

Just give me a call or email me to

Short Sales Maryland 


Clients are advised to consult with a tax professional regarding the potential tax or legal consequences for their particular situation. Fernando Herboso & Associates is providing a service in response to very difficult situations for homeowners and as such they are strongly encouraged for all parties involved in a transaction to seek such advice including from a legal advisory.


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Cherry Wings Realty
Cherry Wings Realty - Traverse City, MI
Your Traverse City Michigan Realtor


I did not know those difference, thank you for sharing those.  In this market, we can use all the extra tidbits of information on short sales that we can get.  It seems that things change daily when it comes to dealing with short sales.

Mar 22, 2010 10:23 PM #1
Laraine Shape
Comey & Shepherd Realtors - Glendale, OH
Selling kitchen at a time

Great post Fernando - I think ALL short sales should require certified appraisals.  I think the BPO's open a door where we don't want to be

Mar 22, 2010 11:04 PM #2
Al Raymondi
Ocean View Realty Group in Ormond By The Sea Florida - Ormond Beach, FL
Ormond By The Sea Florida - Home and Condo Sales a

Thanks for the tips Fernando.

Mar 25, 2010 04:02 AM #3
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Fernando Herboso - Broker for Maxus Realty Group

301-246-0001 Serving Maryland, DC and Northern VA
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